The State of Victoria Department of Environment and Primary Industries Melbourne 2014

© The State of Victoria Department of Environment and Primary Industries Melbourne 2014

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ISBN 978-1-74287-077-9(Online)

Key contributors

·Victorian Government (Department of Environment and Primary Industries)

·Australian Government (Department of Agriculture)

·Australian Government (Department of the Environment)

Disclaimer

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Preface

The State of Victoria and the Commonwealth of Australia (the Parties) entered into five Regional Forest Agreements (RFAs) by signing the RFAs, as follows:

The RFAs are twenty-year agreements that aim to balance the social, environmental and economic values of key forested regions. They establish a bilateral framework for the sustainable management of the public multiple use and conservation forests within the Victorian RFA regions and development of forest industry in the State. The Parties remain committed to ensuring that the RFAs are durable and that the milestones and obligations that they contain are delivered to ensure effective conservation, forest management and forest industry outcomes. The RFAs indicate the process for extending the agreements for a further period will be determined jointly by the Parties as part of the third five-yearlyreviews.

The five Victorian RFAs were developed as part of a series of RFAs between the Commonwealth Government and the Governments of Victoria, New South Wales, Western Australia and Tasmania. Whilst all the RFAs have their own unique elements, they have all been drawn up under the aegis of the National Forest Policy Statement and all have an agreed requirement for reviews of progress with implementation of milestones and obligations.

An important element of each of the Victorian RFAs is the requirement for a five-yearly review of the performance of the RFAs.

The purpose of the five-yearly review is to assess and report on progress made against the milestones specified in the RFAs, and will include:

• the extent to which milestones and obligations have been met, including the management of the National Estate
• the results of monitoring of sustainability indicators, and
• invited public comment on the performance of the RFAs.

A DraftReport on Progress with Implementation of the Victorian Regional Forest Agreements (RFAs)(the Draft Report) was developed by the Parties in 2009. This report comprised the combined first and second five-yearly reviews and covered the reporting period from the date each RFA wassigned to 30 June 2004 (Period 1), and between 1 July 2004 and 30 June 2009 (Period 2).

The Draft Report was released for public comment on 11 December 2009. An extended 11week period of public comment ensued during which thirty submissions on the Draft Report were accepted by the then Victorian Government Department of Sustainability and Environment (DSE).

The Parties appointed an Independent Reviewer with experience in RFA implementation to undertake an analysis of the Draft Reportand all public submissions that were received during the public comment period, and prepare a report.

The Independent Review on Progress with Implementation of the Victorian Regional Forest Agreements (RFAs) was released on 28 September 2010 by Senator the Hon. Joseph Ludwig, the then Australian Government Minister for Agriculture, Fisheries and Forestry and the Hon. Gavin Jennings MP, the then Victorian Government Minister for Environment and Climate Change. The release coincided with the report being tabled in the Federal Parliament on 28September 2010. The comprehensive report identified 28 specific recommendations and is available at: .

The Ministers jointly announced that the Parties would consider the recommendations in the Independent Reviewer’s report and stated that a joint government response to the recommendations would be provided by the Parties after details of the recommendations had been considered by the Governments.

The Independent Reviewer’s report contained two forms of recommendations. The ‘R’recommendations were recommendations for improvements to be made to the Draft Report in preparing the final review report. The Parties have responded by providingadditional or updated informationin the FinalReport on Progress with Implementation of the VictorianRegionalForest Agreements (RFAs) (the Final Report). TheFinal Report is available at:

The ‘C’ recommendations were recommendations to the Parties pertaining tothe continued implementation of Victoria’s RFAs, and this report is the joint response to those ‘C’ recommendations from the Parties.

The Parties have carefully considered the Independent Reviewer’s recommendations.This Joint Australian and Victorian Government Response to the Independent Review on Progress with Implementation of the Victorian Regional Forest Agreements (RFAs) provides the Parties agreed response to each of the Independent Reviewer’s recommendations.

The Parties will continue to collaborate on implementation of the Victorian RFAs including the recommendations during the period leading up to the third five-yearly review and will report on progress with the agreed actions within the joint government response as part of the next five-yearlyreview.

The Parties reconfirm their commitment to continuous improvement in ecologically sustainable forest management as envisaged by the National Forest Policy Statement and Victoria’s RFAs. The commitments in this joint government response will ensure that Victoria’s management of public multiple use and conservation forests continues to adapt to reflect new information, priorities and community expectations.

The Parties remain committed to RFAs as an appropriate mechanism for effective environmental protection, forest management and forest industry practices in regions covered by RFAs.

Contents

Preface

Relationship to Statutory Obligations

Milestones

Five-Yearly Review

Monitoring, Reporting and Consultative Mechanisms

Sustainability Indicators

Private Land

Threatened Flora and Fauna

Water

The CAR Reserve System

Industry Development

Indigenous Heritage

Research

Funding

Documents Cited in this Report

Appendix A

Relationship to StatutoryObligations

Recommendation R1

That the Parties include additional information in the final Report on Progress on the accountability arrangements for VicForests including the roles of the Treasurer, Minister for Agriculture and Minister for Environment and Climate Change.

Joint Government Response

The Parties support this recommendation as a means of increasing transparency and clarity in the Final Report.

Additional informationclarifying the public native forestry governance arrangements and allocation of timber resources from State forests in Victoria has been included at Section 5.1 (pages 19-20) in the Final Report. It is also provided in AppendixA.

Recommendation C1

That the Parties consider amending the RFAs to reflect any administrative or legislative changes including the changes made to the EnvironmentProtection and Biodiversity Conservation Act 1999 in 2006.

Joint Government Response

The Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) came into force on 16July2000. The EPBC Act repealed and replaced the following Commonwealth statutes:

• Environment Protection (Impact of Proposals) Act 1974
• Endangered Species Protection Act 1992
• National Parks and Wildlife Conservation Act 1975
• World Heritage Properties Conservation Act 1983

Two of the Victorian RFAs (East Gippsland and Central Highlands) were agreed between the Parties prior to the assent of the EPBC Act. The Parties acknowledge this important legislative change in 2000 and agree that the RFAs are administered in the context of the EPBC Act.

Further to this, the EPBC Act has been amended during Periods 1 and 2. The 2006 amendments to the EPBC Act were designed to streamline the EPBC Act to benefit industry, the economy and the nation while maintaining a strong commitment to protecting Australia’s unique and iconic natural, cultural and Indigenous heritage. Specifically, in relation to the protection of threatened species and ecological communities, the 2006 amendments to the EPBC Act updated both the listing processes and the processes surrounding recovery plans for threatened species and ecological communities.

Legislative changes since the signing of the Victorian RFAs have also altered the way national heritage places and World Heritage properties are managed. This includes the transition from the Register of the National Estate (which was originally established under the CommonwealthAustralian Heritage Commission Act 1975) to the National Heritage List, established under the EPBC Act.

The Parties therefore acknowledge that there have been a number of legislative changes since the signing of the Victorian RFAs. The Parties agree that the RFAs will be administered by the Parties within the context of these changes andfurther agree to consider the need to amend the Victorian RFAs to reflect these changes.

The Parties acknowledge that the process for extending the Victorian RFAs will be jointly determined by the Parties as part of the third five-yearly review. The Parties agree that any required amendments to the Victorian RFAs should be made as part of this extension process to ensure the RFAs are relevant and current, considering legislative and administrative changes, learnings from the first 15 years of the Victorian RFAs and other relevant matters.

Milestones

Recommendation C2

That the Parties consider strengthened public reporting of progress in implementing the RFAs consistent with the Australian Government’s response to the Hawke review.

Joint Government Response

On 31 October 2008, the then Australian Government Minister for the Environment, Heritage and the Arts commissioned an independent review of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) by Dr Allan Hawke (Hawke Review). Dr Hawke’s final report, The Australian Environment Act: Report of the Independent review of the Environment Protection and Biodiversity Conservation Act 1999 (Hawke Report) (Hawke 2009) was released on 21 December 2009.

On 24 August 2011, the then Australian Government Minister for Sustainability, Environment, Water, Population and Communities released the Australian Government response to the Hawke Report.

The Australian Government supports long-term RFAs and will work cooperatively with the Victorian Government, through the process to extend the RFAs, to provide resource security and a stable investment environment for the forest industry and establish appropriate and timely reporting arrangements.

Five-Yearly Review

Recommendation R2

That the Parties include a more detailed explanation for the delay of the five yearly review in the Final Report on Progress.

Joint Government Response

The Parties support this recommendation as a means of increasing transparency and clarityin the Final Report.

Additional information providing amore detailed explanation for the delay of the five-yearly reviewscaused by the reforms in the management of Victorian public native forests as a consequence of the Our Forests, Our Future policy statement (NRE 2002a)is provided atSection 5.3 (pages 21-22) in the Final Report. The additional informationis also provided in Appendix A.

Recommendation C3

That the Parties commence planning for the next five-yearly review due by June 2014. The Parties should also commence development of the criteria which they will consider in making recommendations about any extensions to the RFAs. These criteria should be made publicly available as part of the next review process.

Joint Government Response

The Australian Government remains committed to the Victorian RFAs and to establishing a 20-year rolling life, to each RFA. This will be achieved by extending the RFAs for five years following the successful completion and implementation of each agreement’s five-yearly review.

The Victorian Government is committed to renewing the Victorian RFAs every five years to provide 20-year resource security.

The RFAs require the Parties to determine the mechanism and timing for the five-yearly reviews before the end of the five-year period.

Recommendation C4

That the Parties consider cancelling the West Victoria Regional Forest Agreement or substantially amending the RFA given the significant additions to reserves and reduction in timber availability made since the agreement was signed.

Joint Government Response

The Parties recognise that there have been a number of changes to forest management in the West Victoria RFA region since the signing of the agreement in 2000.The Parties recognise that theWest Victoria RFA is still serving its overarchingpurpose in relation to conservation and multiple use forests.

The Parties agree that the West Victoria RFA will be administered by the Parties within the context of these changes andfurther agree to consider the need to amend the West Victoria RFA to reflect these changes.

The Parties agree that any required amendments to the West Victoria RFA will be made as part of extension process for the Victorian RFAs. See Recommendation C1.

Monitoring, Reporting and Consultative Mechanisms

Recommendation R3

That the Victorian Government develops Statewide (including East Gippsland) Guidelines for the Management of Cultural Heritage Values in Forests, Parks and Reserves and that these Guidelines are jointly agreed no later than December 2011. This commitment and timeframe should be included in the final Report on Progress.

Joint Government Response

The Parties support including additional informationas a means of increasing transparency and clarityin the Final Report.

The Victorian Governmenthas reviewed the Aboriginal Heritage Act 2006 (Vic) and in 2014will consider whether there is a need for the development of Statewide guidelines for the management of cultural heritage values.This additional information is provided at Section 5.5 (page 27) in the Final Report.It is also providedin Appendix A.

Recommendation R4

That the Parties include additional information on reports of internal audits of compliance with the Code of Forest Practices for timber production in the final Report on Progress.

Joint Government Response

The Parties support this recommendation as a means of increasing transparency and clarityin the Final Report.

Additional information has been included at Section 5.5 (page 26) in the Final Report to clarify the program of internal audits of compliance with the Code of Practice for Timber Production 2007(DSE 2007b);from the commencement of independent audits by the Environment Protection Authority in 2003, through DSE audits of VicForests in 2007 to 2009,to the implementation of the 2010 audit program using independent third-party auditors. This additional information is also provided in Appendix A.

Recommendation C5

That the Victorian Government give priority to monitoring of sustainability indicators to enable comprehensive reporting in the next State of the Forests Report due in 2013.

Joint Government Response

The Victorian Government recognises that many of its sustainability indicators are difficult and/or costly to monitor and measure. For this reason, the Victorian Government will give priority to monitoring and measuringthe sustainability indicators that are most practical, cost-effective and capable of being implemented at the regional levelto inform the sustainable management of Victoria’s public native forests. The Victorian Government is also assessing the measurability of its sustainability indicators to determine which, if any, of the reported data gaps can be addressed over time.

The Victorian Government has established a Victorian Forest Monitoring Program. Its purpose is to assess and monitor the extent, state and condition of Victorian public forests (State forests, national parks and other conservation reserves) in a timely and accurate mannerto inform sustainable forest management.The Victorian Forest Monitoring Programwill be used for reporting in the Victorian and Australian State of the Forests Reports in 2013. At this stage, priority indicators are being included on all public land tenures.

The Parties are mindful that the detection of trends in sustainability indicators over time is an important element of sustainable forest management, and that the continuity of certain datasets is important to many stakeholders.

The Parties agree that the Victorian Government’s focus on monitoring and measuring sustainability indicators is intended to demonstrate continual improvement in providing meaningful information on the sustainable development of Victorian forests.

Sustainability Indicators

Recommendation C6

That the Victorian Government undertake a review of the current Victorian sustainability indicators and complete this review by the end of 2011. The review should be guided by the milestone and obligation that “the indicators will be practical, measurable, cost effective and capable of being implemented at the regional level.”

Joint Government Response

See Recommendation C5.

Under the Ecologically Sustainable Forest Management objective which requires a long-term commitment to continuous improvement,the Victorian Government is assessing the measurability of its sustainability indicators to determine which, if any, of the reported data gaps can be addressed over time. A formal review of the Criteria and Indicators for Sustainable Forest Management in Victoria(DSE 2007a) is not underway at this time. However, it has always been a clear intention by the Victorian Government that the Criteria and Indicators for Sustainable Forest Management in Victoria would be subject to continuous improvement.